GOLF - Acushnet Holdings draws cautious view from Morgan Stanley in first ratings look

Morgan Stanley launched coverage on Acushnet Holdings (GOLF +1.8%) with an Equal-weight rating. Analyst Brian Harbour pointed to best-in-class management for the Titleist golf ball maker with category-dominant brands which cater to dedicated, high end customers. The company's unique control over the supply chain is also seen as an asset. GOLF is also noted to have demonstrated an ability to develop new products regularly to drive sales in all segments and the significant history of return of capital is expected to continue. Despite all those positive vibes the cautious rating on GOLF from Morgan Stanley is based off the current trading multiples. "Trading around pre-Covid multiples, we see the shares as closer to fairly valued as GOLF returns to a more normalized pace of sales/earnings growth in '22/'23, with more balanced risks (ongoing demand tailwinds vs macro uncertainty, margin pressures)." Morgan Stanley's price target of $48 on GOLF still implies more

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Acushnet Holdings draws cautious view from Morgan Stanley in first ratings look